Betting operator Kambi has announced a significant boost to revenue in the third quarter of 2019.
The results come at the end of a period in which they have secured expansion in the US and have entered into two new partnerships, which have produced a significant increase in revenue, but have also had a negative effect on profit and costs.
According to the figures, revenue grew by 12.2% in the third quarter of this year, while profit fell to €2.3 million compared with the figure of €3.3 million for this time last year. Operating costs were also up by 20.2% to €19.6 million as opposed to €16.3 million for this time last year.
Speaking about the results, the CEO of the company, Krisitan Nylen, cited the unfavourable comparison with 2018 when results were boosted by the football World Cup, and the fact that the company had invested considerably in its expansion:
“The third quarter is traditionally a challenging one for the sports betting industry, particularly in a year with no major summer football tournament. This, along with our ongoing investments to capitalise on the huge US opportunity, was the reason for the year-on-year decrease in operating result.”
The US market once again dominated focus for the company in recent months, with the addition of
gaming operator Penn National and Jack Entertainment of Ohio.
There were a number of launches of new facilities across the US market in the third quarter of 2019, including debuts at casinos and other bases in West Virginia, Iowa, Indiana and New Jersey.
Kambi also benefitted from the extension to their current contracts with DraftKings and NagaWorld, with the DraftKings deal being particularly significant as the brand expands rapidly outside of its early base in New Jersey, one of the first states to implement a regulated sports betting market.